• USDJPY reversed from resistance area
• Likely to fall to support level 104.20
USDJPY currency pair recently reversed down from the resistance area lying between the key resistance level 105.55 (former monthly high from November), upper daily Bollinger band and the 38.2% Fibonacci correction of the previous extended downward impulse from last June. The downward reversal from this resistance area created the daily candlesticks reversal pattern Shooting Star – which marked the end of the pervious correction (ii).
Given the clear daily downtrend and the strongly bearish US dollar sentiment as seen across the FX markets today – USDJPY currency pair is expected to fall further toward the next support level 104.20 (former resistance from January).